The bears are back in action with the price dropping noticeably, which could test key support lower. The past month has remained very bullish with a 20% rally, which helped Bitcoin price hit a new ATH near $74,000. However, the token suffered a massive 18% drop but somehow recovered. Now market participants have revived hopes of a healthy uptrend returning, while a recent downtrend has shaken up the bullish trajectory.
Now the question arises whether BTC price will remain consolidated until Bitcoin halving or if this is a trap to catch the bears.
The daily chart of Bitcoin price is trading within a parabolic curve, with a final touch to the curve’s lower support line expected to trigger a massive rally. The recent decline has turned market sentiment to bearish, indicating traders are becoming increasingly fearful. So this indicates that the rally is not yet close to euphoria. So the cycle appears to be in its early stages.
If prices remain in the early stages of the cycle, a downtrend may occur. However, this could be a bullish indicator that could push the BTC price towards $80,000.
Bitcoin’s short-term trading suggests that the price is trading below the resistance level of around $71,324.33. Because the uptrend is preventing it from breaking above this level. This caused the trade to enter a lower support level, which added to the bearish pressure on the token. There is also a possibility that sales volume will strengthen and prices below $66,000 will be available.
Moreover, the possibility of a rebound has surfaced as RSI has reached a low support level and is about to experience a bullish divergence. This could cause the price to start a bullish rise and recover levels above $71,000. However, bulls are expected to see a sharp uptick from this level, which could push the price to new highs, perhaps near $80,000, just before the halving. After the event, Bitcoin (BTC) price is expected to maintain a significant upward trend and head toward a higher target.